Interrupter CheckmarkInterrupter IconFacebookGoogle PlusInstagramGroupRamsey SolutionsTwitterYouTubeExpand MenuStoreCloseSearchExpand MenuBackStoreSign in

Ask Dave

Double Payment on First Mortgage Payment?

Ever wonder how to keep from paying a lot of interest? This is a simple concept.

QUESTION: A listener says that making a double payment on the first payment of the mortgage would save a lot of interest.  Is he right?

ANSWER: There are no magic tricks for mortgages.  There’s nothing magic about making a double payment on your first payment.  You’re simply prepaying some principle.  In other words, you just didn’t borrow as much money and that saves you interest on the amount of the principle.  If you’re going to do that, just do a smaller mortgage to start with. 
Thank you! Your guide is on its way!

Want to Buy a House With Confidence?

Want to Buy a House With Confidence and Peace of Mind?
 

Want to Buy a House With Confidence and Peace of Mind?